Expansion 'on track' at Dana Gas Iraq plant

Dana Gas is one of two UAE companies exploring natural gas reserves in Khor Mor, Kurdistan Region of Iraq.

Dana Gas has been in the Kurdistan Region of Iraq for over a decade.
Dana Gas has been in the Kurdistan Region of Iraq for over a decade.

Expansion work at the Khor Mor gas field in Iraq is on track to remove production bottlenecks and increase capacity, Dana Gas said.

Sharjah-based Dana Gas is part of a five-strong oil and gas consortium called Pearl Petroleum that is taping into natural gas reserves in the Kurdistan Region of Iraq. And in an update on its work in the autonomous territory, Dana Gas said its Phase 1 expansion programme at the Khor Mor gas field was on track.

Phase 1 includes fast-tracked efforts to remove production bottlenecks, which, if fixed, could see throughput at the facility rise by 25% in Q3 2018.

READ: UAE's Dana Gas to cut workforce and costs by half

Meanwhile, plans are also in motion to increase Peal Petroleum's production by 170% by 2021, Dana Gas said.

To increase production capacity, two gas processing trains will be installed, complimenting the two trains already in use. By doubling the number of gas trains in operation at the Khor Mor field, a significant uplift in capacity is expected.

The expansion plan will be financed at Pearl Petroleum level by third party financing or internal cash flow generated without capital provided by Dana Gas, the Abu Dhabi Securities Exchange-listed firm said.

Phase 1 includes a drilling programme for the appraisal and development of Khor Mor and Chemchemal gas fields, both of which are major exploration sites in the region. Alongside drilling appraisal activity, work to existing wells will be carried out.

Dana Gas claims to be one of the largest natural gas companies in the Middle East, with exploration and production operations in Egypt, the UAE, and Kurdistan, an autonomous region of Iraq.

Dana Gas owns a 35% stake in Pearl Petroleum, a five-strong consortium set up to work on the gas field. The four other members are: UAE-based Crescent Petroleum; OMV Group from Austria; Hungary's MOL; and Germany-headquartered RWE. 

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